TUPELO, Miss., April ­­19, 2017 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended March 31, 2017.

Highlights for the first quarter of 2017 included:

  • Net income of $38.1 million, or $0.41 per diluted share.
  • Generated total deposit growth of $354.7 million, or 12.3 percent on an annualized basis.
  • Net interest margin remained stable at 3.46 percent.
  • Earnings benefitted from a positive pre-tax mortgage servicing rights ("MSR") valuation adjustment of $0.9 million.
  • Net operating income – excluding MSR – of $36.9 million, or $0.39 per diluted share.
  • Credit quality remained stable; recorded provision for credit losses of $1.0 million for the quarter.
  • Total operating expense declined compared to both the first and fourth quarters of 2016 and operating efficiency ratio – excluding MSR – declined to 68.4 percent.
  • Repurchased 1,613,691 shares of outstanding common stock at a weighted average price of $30.62 per share.

The Company reported net income of $38.1 million, or $0.41 per diluted share, for the first quarter of 2017 compared with net income of $22.5 million, or $0.24 per diluted share, for the first quarter of 2016 and net income of $37.7 million, or $0.40 per diluted share, for the fourth quarter of 2016.    

The Company reported net operating income – excluding MSR – of $36.9 million, or $0.39 per diluted share, for the first quarter of 2017 compared to $36.9 million, or $0.39 per diluted share, for the first quarter of 2016 and $30.7 million, or $0.33 per diluted share, for the fourth quarter of 2016.  Net operating income – excluding MSR – is a non-GAAP financial measure used by management to assess the core operating performance of the Company.  This measure excludes items such as securities gains and losses, MSR valuation adjustments, restructuring charges, merger-related expenses, industry-related legal settlements, and other one-time charges.  A full reconciliation of this measure is provided in the supplemental schedules of this news release.

"Our first quarter results reflect consistent improvement in our financial results, highlighted by continued balance sheet growth, disciplined expense control, and continued share repurchase activity," remarked Dan Rollins, Chairman and Chief Executive Officer.  "We reported deposit growth for the quarter of $354.7 million, or 12.3 percent on an annualized basis.  While first quarter is typically seasonally high for deposit growth, this growth is reflective of our teammates' continued commitment to broadening customer relationships and growing core deposits.  Total operating expenses declined compared to both the first and fourth quarters of 2016, resulting in a decline in the operating efficiency ratio - excluding MSR - to 68.4 percent.  Finally, we continue to be active in our share repurchase program, as we repurchased just over 1.6 million shares during the quarter at a weighted average price of $30.62 per share."

"Additionally, our net interest margin remained stable at 3.46 percent compared to the fourth quarter of last year.  Yields on both our loan portfolio and securities portfolio increased during the quarter while our average cost of deposits remained flat.  This benefit to our margin was offset by a shift in our asset mix, which resulted from increases in lower yielding assets, including overnight investments and securities." 

Net Interest Revenue

Net interest revenue was $114.6 million for the first quarter of 2017, an increase of 3.1 percent from $111.2 million for the first quarter of 2016 and a decrease of 0.7 percent from $115.4 million for the fourth quarter of 2016.  The fully taxable equivalent net interest margin was 3.46 percent for the first quarter of 2017 compared to 3.56 percent for the first quarter of 2016 and 3.46 percent for the fourth quarter of 2016.  Yields on loans and leases were 4.20 percent for the first quarter of 2017 compared with 4.21 percent for the first quarter of 2016 and 4.18 percent for the fourth quarter of 2016, while yields on total interest earning assets were 3.70 percent for the first quarter of 2017 compared with 3.78 percent for the first quarter of 2016 and 3.70 percent for the fourth quarter of 2016.  The average cost of deposits was 0.23 percent for the first quarter of 2017 compared to 0.21 percent for the first quarter of 2016 and 0.23 percent for the fourth quarter of 2016.

Asset, Deposit and Loan Activity

Total assets were $14.9 billion at March 31, 2017 compared with $13.9 billion at March 31, 2016.  Loans and leases, net of unearned income, were $10.8 billion at March 31, 2017 compared with $10.4 billion at March 31, 2016. 

Total deposits were $12.0 billion at March 31, 2017 compared with $11.5 billion at March 31, 2016.  Time deposits decreased $11.0 million, or 0.6 percent, at March 31, 2017 compared to March 31, 2016.  Over the same time period, interest bearing demand deposits increased $148.4 million, or 2.9 percent, while noninterest bearing demand deposits increased $298.0 million, or 9.6 percent, and savings deposits increased $120.7 million, or 8.0 percent.

Provision for Credit Losses and Allowance for Credit Losses

Earnings for the first quarter reflect a provision for credit losses of $1.0 million, which was flat compared to both the first and fourth quarters of 2016.  Net recoveries for the first quarter of 2017 were $0.5 million, compared with net charge-offs of $1.0 million for the first quarter of 2016 and net charge-offs of $3.2 million for the fourth quarter of 2016.  The allowance for credit losses was $125.2 million, or 1.16 percent of net loans and leases, at March 31, 2017, compared with $126.5 million, or 1.21 percent of net loans and leases, at March 31, 2016 and $123.7 million, or 1.14 percent of net loans and leases, at December 31, 2016. 

Total non-performing assets ("NPAs") were $90.0 million, or 0.83 percent of net loans and leases, at March 31, 2017 compared with $106.9 million, or 1.02 percent of net loans and leases, at March 31, 2016, and $109.7 million, or 1.01 percent of net loans and leases, at December 31, 2016.  Other real estate owned was $8.5 million at March 31, 2017 compared with $12.7 million at March 31, 2016 and $7.8 million at December 31, 2016.

Noninterest Revenue

Noninterest revenue was $70.9 million for the first quarter of 2017, compared with $64.7 million for the first quarter of 2016 and $72.0 million for the fourth quarter of 2016.  These results included a positive MSR valuation adjustment of $0.9 million for the first quarter of 2017 compared with a negative MSR valuation adjustment of $8.0 million for the first quarter of 2016 and a positive MSR valuation adjustment of $11.2 million for the fourth quarter of 2016.  Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.   

Excluding the MSR valuation adjustments, mortgage banking revenue was $8.1 million for the first quarter of 2017, compared with $9.8 million for the first quarter of 2016 and $5.6 million for the fourth quarter of 2016.  Mortgage origination volume for the first quarter of 2017 was $287.8 million, compared with $315.4 million for the first quarter of 2016 and $395.9 million for the fourth quarter of 2016.

Credit and debit card fee revenue was $8.9 million for the first quarter of 2017, compared with $9.0 million for the first quarter of 2016 and $9.3 million for the fourth quarter of 2016.  Deposit service charge revenue was $9.7 million for the first quarter of 2017, compared with $11.0 million for the first quarter of 2016 and $10.0 million for the fourth quarter of 2016.  Insurance commission revenue was $32.9 million for the first quarter of 2017, compared with $33.2 million for the first quarter of 2016 and $25.7 million for the fourth quarter of 2016.  Wealth management revenue was $5.2 million for the first quarter of 2017, compared with $5.1 million for the first quarter of 2016 and $5.4 million for the fourth quarter of 2016.    

Noninterest Expense

Noninterest expense for the first quarter of 2017 was $127.1 million, compared with $141.5 million for the first quarter of 2016 and $130.5 million for the fourth quarter of 2016.  Total noninterest expense for the first quarter of 2016 included a charge of $13.8 million to reflect a liability associated with the settlement of a previously announced joint investigation by the Consumer Financial Protection Bureau and the U.S. Department of Justice.  Salaries and employee benefits expense was $81.4 million for the first quarter of 2017 compared to $81.7 million for the first quarter of 2016 and $80.9 million for the fourth quarter of 2016.  Occupancy expense was $10.3 million for the first quarter of 2017, which was flat compared to both the first and fourth quarters of 2016.  Other noninterest expense was $29.4 million for the first quarter of 2017, compared to $33.2 million for the first quarter of 2016 and $34.0 million for the fourth quarter of 2016.

Capital Management

The Company's equity capitalization is comprised entirely of common stock.  BancorpSouth's ratio of shareholders' equity to assets was 11.45 percent at March 31, 2017, compared with 12.06 percent at March 31, 2016 and 11.71 percent at December 31, 2016.  The ratio of tangible shareholders' equity to tangible assets was 9.49 percent at March 31, 2017, compared with 10.05 percent at March 31, 2016 and 9.73 percent at December 31, 2016.

During the first quarter of 2017, the Company repurchased 1,613,691 shares of its outstanding common stock at a weighted average price of $30.62 per share.  During the fourth quarter of 2016, the Company repurchased 436,541 shares at a weighted average price of $22.91 per share.  As of March 31, 2017, the Company had 4,398,249 remaining shares available for repurchase under its current share repurchase authorization, which expires on December 29, 2017.  On January 9, 2017, the Company redeemed $6.7 million in junior subordinated debt securities issued to American State Capital Trust I and $6.2 million in junior subordinated debt securities issued to Business Holding Company Trust I.  Each of these junior subordinated debt securities was assumed by the Company pursuant to prior acquisitions of banks by the Company.

Estimated regulatory capital ratios at March 31, 2017 were calculated in accordance with the Basel III capital framework.  BancorpSouth is a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 12.16 percent at March 31, 2017 and total risk-based capital of 13.21 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, in order to qualify for "well capitalized" classification. 

Transactions

On December 19, 2016, BancorpSouth Insurance Services, Inc. announced and closed the acquisition of certain assets of Gonzales, Louisiana based Waguespack & Associates Insurance, Inc.  The agency was formed in 1986 and is expected to produce annual revenues of approximately $3 million.  Waguespack will continue to operate under current leadership in its current location in Gonzales.

On January 21, 2014, the Company announced the signing of a definitive merger agreement with Central Community Corporation, headquartered in Temple, Texas, pursuant to which Central Community Corporation agreed to be merged with and into the Company.  Central Community Corporation is the parent company of First State Bank Central Texas ("First State Bank"), which is headquartered in Austin, Texas.  First State Bank operates 31 full-service banking offices in central Texas.  As of March 31, 2017, Central Community Corporation, on a consolidated basis, reported total assets of $1.4 billion, total loans of $678.0 million and total deposits of $1.1 billion.  Under the terms of the definitive agreement, the Company will issue approximately 7,250,000 shares of the Company's common stock plus $28.5 million in cash for all outstanding shares of Central Community Corporation's capital stock, subject to certain conditions and potential adjustments.  The merger has been unanimously approved by the Board of Directors of each company and was approved by Central Community Corporation shareholders on April 24, 2014.  The Company and Central Community Corporation entered into an extension of the merger effective on October 13, 2016, extending the merger agreement through December 31, 2017 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions. The merger agreement remains in effect until terminated by the Board of Directors of the Company or Central Community Corporation.  The terms of the agreement provide for a minimum total deal value of $202.5 million but also allow Central Community Corporation to terminate the agreement if the average closing price of the Company's common stock declines below a certain threshold prior to closing.  The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.

On January 8, 2014, the Company announced the signing of a definitive merger agreement with Ouachita Bancshares Corp., parent company of Ouachita Independent Bank (collectively referred to as "OIB"), headquartered in Monroe, Louisiana, pursuant to which Ouachita Bancshares Corp. agreed to be merged with and into the Company.  OIB operates 11 full-service banking offices along the I-20 corridor and has a loan production office in Madison, Mississippi.  As of March 31, 2017, OIB, on a consolidated basis, reported total assets of $732.4 million, total loans of $498.2 million and total deposits of $606.8 million.  Under the terms of the definitive agreement, the Company will issue approximately 3,675,000 shares of the Company's common stock plus $22.875 million in cash for all outstanding shares of Ouachita Bancshares Corp.'s capital stock, subject to certain conditions and potential adjustments.  The merger has been unanimously approved by the Board of Directors of each company and was approved by Ouachita Bancshares Corp. shareholders on April 8, 2014.  The Company and Ouachita Bancshares Corp. entered into an extension of the merger effective on October 13, 2016, extending the merger agreement through December 31, 2017 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions. The merger agreement remains in effect until terminated by the Board of Directors of the Company or Ouachita Bancshares Corp.  The terms of the agreement provide for a minimum total deal value of $111.1 million but also allow Ouachita Bancshares Corp. to terminate the agreement if the average closing price of the Company's common stock declines below a certain threshold prior to closing.  The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.

For the most recent information regarding the status of the merger with Central Community Corporation and the status of the merger with Ouachita Bancshares Corp. in our periodic and current reports, please refer to the Form 8-K that was previously filed with the SEC on October 14, 2016.

Summary

Rollins concluded, "We are pleased to see the positive momentum seen in our financial performance for the last several quarters continue into 2017.  As we look toward the remainder of the year, I'm excited about the opportunity to continue to build on this progress.  While first quarter is historically seasonally slow for loan growth, we are optimistic about our team's ability to produce quality credits and grow loans.  Additionally, our producers in other areas including mortgage, insurance, and wealth management continue to look for ways to grow their customer base despite certain industry-specific headwinds.  Finally, our credit quality remains strong while total operating expenses remain flat.  Our team is confident this simple approach will allow us to continue to improve our operating performance."

Conference Call

BancorpSouth will conduct a conference call to discuss its first quarter 2017 results on April 20, 2017, at 10:00 a.m. (Central Time).  Investors may listen via the Internet by accessing BancorpSouth's website at www.bancorpsouth.com and accessing the "Investor Relations" webpage.  A replay of the conference call will be available at BancorpSouth's website for at least two weeks following the call.

About BancorpSouth, Inc.

BancorpSouth, Inc. (NYSE: BXS) is a financial holding company headquartered in Tupelo, Mississippi, with $14.9 billion in assets.  BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 234 full service branch locations as well as additional mortgage, insurance, and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.  BancorpSouth is committed to a culture of respect, diversity, and inclusion in both its workplace and communities. To learn more, visit our Community Commitment page at www.bancorpsouth.com.  Like us on Facebook; follow us on Twitter: @MyBXS; or connect with us through LinkedIn.

Forward-Looking Statements

Certain statements contained in this news release may not be based upon historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as "anticipate," "believe," "could," "estimate," "expect," "foresee," "hope," "intend," "may," "might," "plan," "will," or "would" or future or conditional verb tenses and variations or negatives of such terms. These forward-looking statements include, without limitation, those relating to the terms, timing and closings of the proposed mergers with Ouachita Bancshares Corp. and Central Community Corporation, the acceptance by customers of Ouachita Bancshares Corp. and Central Community Corporation of the Company's products and services if the proposed mergers close, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its Bank Secrecy Act ("BSA") and anti-money laundering ("AML") compliance program and its fair lending compliance program, the Company's compliance with the consent order it entered into with the Consumer Financial Protection Bureau and the United States Department of Justice related to the Company's fair lending practices (the "Consent Order"), amortization expense for intangible assets, goodwill impairments, loan impairment, utilization of appraisals and inspections for real estate loans, maturity, renewal or extension of construction, acquisition and development loans, net interest revenue, fair value determinations, the amount of the Company's non-performing loans and leases, credit quality, credit losses, liquidity, off-balance sheet commitments and arrangements, valuation of mortgage servicing rights, allowance and provision for credit losses, early identification and resolution of credit issues, utilization of non-GAAP financial measures, the ability of the Company to collect all amounts due according to the contractual terms of loan agreements, the Company's reserve for losses from representation and warranty obligations, the Company's foreclosure process related to mortgage loans, the resolution of non-performing loans that are collaterally dependent, real estate values, fully-indexed interest rates, interest rate risk, interest rate sensitivity, calculation of economic value of equity, impaired loan charge-offs, diversification of the Company's revenue stream, the growth of the Company's insurance business and commission revenue, the growth of the Company's customer base and loan, deposit and fee revenue sources, liquidity needs and strategies, sources of funding, net interest margin, declaration and payment of dividends, the utilization of the Company's share repurchase program, the implementation and execution of cost saving initiatives, improvement in the Company's efficiencies, operating expense trends, future acquisitions and consideration to be used therefor, and the impact of certain claims and ongoing, pending or threatened litigation, administrative and investigatory matters. 

The Company cautions readers not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors. These factors may include, but are not limited to, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program and its fair lending compliance program, the Company's ability to successfully implement and comply with the Consent Order, the ability of the Company, Ouachita Bancshares Corp. and Central Community Corporation to obtain regulatory approval of and close the proposed mergers, the willingness of Ouachita Bancshares Corp. and Central Community Corporation to proceed with the proposed mergers, the potential impact upon the Company of the delay in the closings of these proposed mergers, the impact of any ongoing, pending or threatened litigation, administrative and investigatory matters involving the Company, conditions in the financial markets and economic conditions generally, the adequacy of the Company's provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, limitations on the Company's ability to declare and pay dividends, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd-Frank Act, and supervision of the Company's operations, the short-term and long-term impact of changes to banking capital standards on the Company's regulatory capital and liquidity, the impact of regulations on service charges on the Company's core deposit accounts, the susceptibility of the Company's business to local economic and environmental conditions, the soundness of other financial institutions, changes in interest rates, the impact of monetary policies and economic factors on the Company's ability to attract deposits or make loans, volatility in capital and credit markets, reputational risk, the impact of the loss of any key Company personnel, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, the growth of the Company's insurance business and commission revenue, the growth of the Company's loan, deposit and fee revenue sources, the Company's ability to adapt its products and services to evolving industry standards and consumer preferences, competition with other financial services companies, risks in connection with completed or potential acquisitions, the Company's growth strategy, interruptions or breaches in the Company's information system security, the failure of certain third-party vendors to perform, unfavorable ratings by rating agencies, dilution caused by the Company's issuance of any additional shares of its common stock to raise capital or acquire other banks, bank holding companies, financial holding companies and insurance agencies, the utilization of the Company's share repurchase program, the implementation and execution of cost saving initiatives, other factors generally understood to affect the assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations of financial services companies and other factors detailed from time to time in the Company's press and news releases, reports and other filings with the SEC.  Forward-looking statements speak only as of the date that they were made, and, except as required by law, the Company does not undertake any obligation to update or revise forward-looking statements to reflect events or circumstances that occur after the date of this news release.

 

BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)














Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended


3/31/2017

12/31/2016

9/30/2016

6/30/2016

3/31/2016

Earnings Summary:






Interest revenue

$                    122,926

$                    123,444

$                    122,340

$                    119,423

$                    117,972

Interest expense

8,315

8,057

7,750

7,107

6,813

Net interest revenue

114,611

115,387

114,590

112,316

111,159

Provision for credit losses

1,000

1,000

-

2,000

1,000

Net interest revenue, after provision






   for credit losses

113,611

114,387

114,590

110,316

110,159

Noninterest revenue

70,869

71,975

69,673

68,526

64,727

Noninterest expense

127,109

130,519

128,317

127,561

141,512

Income before income taxes

57,371

55,843

55,946

51,281

33,374

Income tax expense

19,278

18,173

18,129

16,589

10,825

Net income

$                      38,093

$                      37,670

$                      37,817

$                      34,692

$                      22,549







Balance Sheet - Period End Balances






Total assets

$               14,866,054

$               14,724,388

$               14,611,483

$               14,137,160

$               13,926,398

Total earning assets

13,757,920

13,549,407

13,483,345

12,977,030

12,760,031

Total securities

2,540,887

2,531,676

2,468,199

2,103,883

2,016,373

Loans and leases, net of unearned income

10,801,694

10,811,991

10,658,761

10,575,978

10,444,697

Allowance for credit losses

125,196

123,736

125,887

126,935

126,506

Total deposits

12,042,845

11,688,141

11,590,059

11,364,367

11,486,697

Long-term debt

530,000

530,000

563,495

365,588

67,681

Total shareholders' equity

1,702,389

1,723,883

1,724,104

1,713,043

1,679,793







Balance Sheet - Average Balances






Total assets

$               14,832,260

$               14,655,360

$               14,366,759

$               14,027,786

$               13,851,661

Total earning assets

13,715,612

13,525,284

13,265,266

12,963,056

12,830,000

Total securities

2,507,701

2,479,008

2,186,889

2,069,058

2,037,739

Loans and leases, net of unearned income

10,820,486

10,737,802

10,601,481

10,513,732

10,372,925

Total deposits

11,941,851

11,700,213

11,509,764

11,437,422

11,431,480

Long-term debt

530,000

534,141

430,886

219,434

67,750

Total shareholders' equity

1,731,931

1,724,871

1,719,503

1,690,906

1,668,465







Nonperforming Assets:






Non-accrual loans and leases

$                      74,439

$                      71,812

$                      70,725

$                      68,638

$                      81,926

Loans and leases 90+ days past due, still accruing

3,063

3,983

2,255

1,875

4,567

Restructured loans and leases, still accruing

4,060

26,047

17,936

9,687

7,753

Non-performing loans (NPLs)

81,562

101,842

90,916

80,200

94,246

Other real estate owned

8,458

7,810

11,391

14,658

12,685

Non-performing assets (NPAs)

$                      90,020

$                    109,652

$                    102,307

$                      94,858

$                    106,931







Financial Ratios and Other Data:






Return on average assets

1.04%

1.02%

1.05%

0.99%

0.65%

Operating return on average assets-excluding MSR*

1.01%

0.83%

1.02%

1.07%

1.07%

Return on average shareholders' equity

8.92%

8.69%

8.75%

8.25%

5.44%

Operating return on average shareholders' equity-excluding MSR*

8.63%

7.08%

8.49%

8.84%

8.89%

Return on tangible equity*

11.19%

10.70%

10.68%

9.99%

6.63%

Operating return on tangible equity-excluding MSR*

10.82%

8.71%

10.36%

10.70%

10.84%

Noninterest income to average assets

1.94%

1.95%

1.93%

1.96%

1.88%

Noninterest expense to average assets

3.48%

3.54%

3.55%

3.66%

4.11%

Net interest margin-fully taxable equivalent

3.46%

3.46%

3.51%

3.56%

3.56%

Net interest rate spread

3.35%

3.36%

3.41%

3.47%

3.47%

Efficiency ratio (tax equivalent)*

67.71%

68.79%

68.72%

69.58%

79.30%

Operating efficiency ratio-excluding MSR (tax equivalent)*

68.43%

73.14%

69.39%

68.01%

70.41%

Loan/deposit ratio

89.69%

92.50%

91.96%

93.06%

90.93%

Price to earnings multiple (avg)

19.15

22.02

18.86

19.07

17.33

Market value to book value

164.09%

168.76%

126.59%

125.23%

119.81%

Market value to book value (avg)

166.39%

145.61%

129.73%

124.62%

116.78%

Market value to tangible book value

202.32%

207.63%

154.87%

153.53%

147.04%

Market value to tangible book value (avg)

205.16%

179.14%

158.71%

152.78%

143.33%

Headcount FTE

3,973

3,998

3,981

4,028

3,966







*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 19 and 20.










Credit Quality Ratios:






Net (recoveries) charge-offs to average loans and leases (annualized)

(0.02%)

0.12%

0.04%

0.06%

0.04%

Provision for credit losses to average loans and leases (annualized)

0.04%

0.04%

0.00%

0.08%

0.04%

Allowance for credit losses to net loans and leases

1.16%

1.14%

1.18%

1.20%

1.21%

Allowance for credit losses to non-performing loans and leases

153.50%

121.50%

138.47%

158.27%

134.23%

Allowance for credit losses to non-performing assets

139.08%

112.84%

123.05%

133.82%

118.31%

Non-performing loans and leases to net loans and leases

0.76%

0.94%

0.85%

0.76%

0.90%

Non-performing assets to net loans and leases

0.83%

1.01%

0.96%

0.90%

1.02%







Equity Ratios:






Total shareholders' equity to total assets

11.45%

11.71%

11.80%

12.12%

12.06%

Tangible shareholders' equity to tangible assets*

9.49%

9.73%

9.86%

10.11%

10.05%













Capital Adequacy:






Common  Equity Tier 1 capital

12.16%

12.23%

12.13%

12.17%

12.14%

Tier 1 capital

12.16%

12.34%

12.32%

12.37%

12.34%

Total capital

13.21%

13.38%

13.37%

13.45%

13.43%

Tier 1 leverage capital

9.95%

10.32%

10.53%

10.66%

10.61%

   Estimated for current quarter












Common Share Data:






Basic earnings per share

$                          0.41

$                          0.40

$                          0.40

$                          0.37

$                          0.24

Diluted earnings per share

0.41

0.40

0.40

0.37

0.24

Operating earnings per share*

0.40

0.40

0.40

0.37

0.34

Operating earnings per share- excluding MSR*

0.39

0.33

0.39

0.39

0.39

Cash dividends per share

0.13

0.13

0.13

0.10

0.10

Book value per share

18.44

18.40

18.33

18.12

17.79

Tangible book value per share*

14.95

14.95

14.98

14.78

14.49

Market value per share (last)

30.25

31.05

23.20

22.69

21.31

Market value per share (high)

32.40

31.75

25.09

24.18

23.64

Market value per share (low)

28.10

22.23

20.98

20.19

18.69

Market value per share (avg)

30.68

26.79

23.78

22.58

20.77

Dividend payout ratio

30.73%

31.11%

31.17%

22.58%

41.85%

Total shares outstanding

92,344,409

93,696,687

94,074,740

94,546,091

94,438,626

Average shares outstanding - basic

93,642,848

93,740,626

94,303,916

94,461,025

94,369,211

Average shares outstanding - diluted

93,829,400

93,966,392

94,563,833

94,694,795

94,593,540













Yield/Rate:






(Taxable equivalent basis)






Loans, loans held for sale, and leases net of unearned income

4.20%

4.18%

4.20%

4.20%

4.21%

Available-for-sale securities:






  Taxable

1.35%

1.31%

1.33%

1.40%

1.40%

  Tax-exempt

5.29%

5.29%

5.32%

5.36%

5.36%

Short-term investments

0.76%

0.41%

0.52%

0.39%

0.33%

  Total interest earning assets and revenue

3.70%

3.70%

3.74%

3.78%

3.78%

Deposits

0.23%

0.23%

0.22%

0.21%

0.21%

  Demand - interest bearing

0.22%

0.20%

0.19%

0.18%

0.17%

  Savings

0.12%

0.12%

0.12%

0.12%

0.12%

  Other time

0.79%

0.79%

0.78%

0.75%

0.73%

Short-term borrowings

0.31%

0.16%

0.15%

0.15%

0.14%

Total interest bearing deposits & short-term borrowings

0.32%

0.31%

0.30%

0.29%

0.28%

Junior subordinated debt

3.29%

3.53%

3.27%

3.23%

3.18%

Long-term debt

0.87%

0.73%

0.83%

1.21%

3.08%

  Total interest bearing liabilities and expense

0.35%

0.34%

0.34%

0.32%

0.31%

Interest bearing liabilities to interest earning assets

70.24%

69.43%

69.33%

69.47%

69.75%

Net interest tax equivalent adjustment

$                        2,261

$                        2,371

$                        2,462

$                        2,493

$                        2,558







*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 19 and 20.




 

 

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)








Mar-17

Dec-16

Sep-16

Jun-16

Mar-16


(Dollars in thousands)

Assets






Cash and due from banks

$                147,684

$                184,152

$                172,782

$                186,381

$                197,538

Interest bearing deposits with other banks

253,738

38,813

151,944

86,472

148,915

Available-for-sale securities, at fair value

2,540,887

2,531,676

2,468,199

2,103,883

2,016,373

Loans and leases

10,822,568

10,835,512

10,685,166

10,604,547

10,475,528

  Less:  Unearned income

20,874

23,521

26,405

28,569

30,831

             Allowance for credit losses

125,196

123,736

125,887

126,935

126,506

Net loans and leases

10,676,498

10,688,255

10,532,874

10,449,043

10,318,191

Loans held for sale

161,600

166,927

204,441

210,698

150,046

Premises and equipment, net

305,250

305,561

305,245

305,694

306,765

Accrued interest receivable

42,329

42,005

41,583

39,645

41,401

Goodwill

300,798

300,798

294,901

294,901

291,498

Other identifiable intangibles

20,865

21,894

19,908

20,831

19,664

Bank owned life insurance

258,518

258,648

257,015

255,240

253,427

Other real estate owned

8,458

7,810

11,391

14,658

12,685

Other assets

149,429

177,849

151,200

169,714

169,895

Total Assets

$           14,866,054

$           14,724,388

$           14,611,483

$           14,137,160

$           13,926,398

Liabilities






Deposits:






  Demand:  Noninterest bearing

$             3,401,348

$             3,250,537

$             3,308,361

$             3,133,460

$             3,103,321

                  Interest bearing

5,182,011

5,034,470

4,877,482

4,838,704

5,033,565

  Savings

1,627,621

1,561,819

1,533,401

1,512,694

1,506,942

  Other time

1,831,865

1,841,315

1,870,815

1,879,509

1,842,869

Total deposits

12,042,845

11,688,141

11,590,059

11,364,367

11,486,697

Securities sold under agreement to repurchase

375,832

454,002

468,969

415,949

431,089

Federal funds purchased






   and other short-term borrowing

-

92,000

-

-

-

Accrued interest payable

4,109

3,975

4,107

3,727

3,305

Junior subordinated debt securities

-

12,888

23,198

23,198

23,198

Long-term debt

530,000

530,000

563,495

365,588

67,681

Other liabilities

210,879

219,499

237,551

251,288

234,635

Total Liabilities

13,163,665

13,000,505

12,887,379

12,424,117

12,246,605

Shareholders' Equity






Common stock

230,861

234,242

235,187

236,365

236,097

Capital surplus

226,204

271,292

278,973

286,994

283,800

Accumulated other comprehensive loss

(50,360)

(50,937)

(33,549)

(27,587)

(32,144)

Retained earnings

1,295,684

1,269,286

1,243,493

1,217,271

1,192,040

Total Shareholders' Equity

1,702,389

1,723,883

1,724,104

1,713,043

1,679,793

Total Liabilities & Shareholders' Equity

$           14,866,054

$           14,724,388

$           14,611,483

$           14,137,160

$           13,926,398







 

 







BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)








Mar-17

Dec-16

Sep-16

Jun-16

Mar-16


(Dollars in thousands)

Assets






Cash and due from banks

$                162,696

$                171,791

$                157,233

$                117,193

$                  71,528

Interest bearing deposits with other banks

258,502

165,805

311,545

237,635

316,108

Available-for-sale securities, at fair value

2,507,701

2,479,008

2,186,889

2,069,058

2,037,739

Loans and leases

10,843,069

10,763,314

10,629,522

10,543,795

10,405,063

  Less:  Unearned income

22,583

25,512

28,041

30,063

32,138

             Allowance for credit losses

124,662

125,526

126,820

126,103

126,567

Net loans and leases

10,695,824

10,612,276

10,474,661

10,387,629

10,246,358

Loans held for sale

128,923

142,669

165,351

142,632

103,227

Premises and equipment, net

305,637

305,994

305,707

307,600

308,065

Accrued interest receivable

38,774

38,648

38,125

36,887

38,306

Goodwill

300,798

296,888

294,901

292,620

291,498

Other identifiable intangibles

21,236

20,303

20,248

19,796

19,987

Bank owned life insurance

257,669

257,397

255,967

254,191

252,422

Other real estate owned

8,154

9,084

13,664

15,666

14,523

Other assets

146,346

155,497

142,468

146,879

151,900

Total Assets

$           14,832,260

$           14,655,360

$           14,366,759

$           14,027,786

$           13,851,661

Liabilities






Deposits:






  Demand:  Noninterest bearing

$             3,272,876

$             3,344,632

$             3,221,539

$             3,122,153

$             3,014,896

                  Interest bearing

5,244,069

4,951,906

4,886,920

4,957,827

5,102,648

  Savings

1,587,725

1,543,542

1,525,016

1,510,250

1,468,262

  Other time

1,837,181

1,860,133

1,876,289

1,847,192

1,845,674

Total deposits

11,941,851

11,700,213

11,509,764

11,437,422

11,431,480

Securities sold under agreement to repurchase

414,272

475,669

454,826

443,340

431,260

Federal funds purchased






   and other short-term borrowing

19,545

3,924

11

4,275

10,484

Accrued interest payable

3,867

4,031

3,950

3,509

3,248

Junior subordinated debt securities

1,146

21,181

23,198

23,198

23,198

Long-term debt

530,000

534,141

430,886

219,434

67,750

Other liabilities

189,648

191,330

224,621

205,702

215,776

Total Liabilities

13,100,329

12,930,489

12,647,256

12,336,880

12,183,196

Shareholders' Equity






Common stock

234,285

234,323

235,860

236,176

235,946

Capital surplus

265,685

271,900

283,437

284,818

282,796

Accumulated other comprehensive loss

(50,616)

(40,454)

(29,743)

(32,820)

(36,184)

Retained earnings

1,282,577

1,259,102

1,229,949

1,202,732

1,185,907

Total Shareholders' Equity

1,731,931

1,724,871

1,719,503

1,690,906

1,668,465

Total Liabilities & Shareholders' Equity

$           14,832,260

$           14,655,360

$           14,366,759

$           14,027,786

$           13,851,661







 

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)












Quarter Ended


Mar-17


Dec-16


Sep-16


Jun-16


Mar-16

INTEREST REVENUE:










Loans and leases

$  111,498


$  112,189


$   111,605


$  109,078


$  107,805

Deposits with other banks

485


169


409


229


263

Available-for-sale securities:










    Taxable

7,350


7,105


6,189


6,009


5,888

    Tax-exempt

2,581


2,771


2,898


2,924


3,032

Loans held for sale

1,012


1,210


1,239


1,183


984

        Total interest revenue

122,926


123,444


122,340


119,423


117,972











INTEREST EXPENSE:










Interest bearing demand

2,786


2,514


2,361


2,208


2,163

Savings

472


470


462


451


443

Other time

3,582


3,711


3,661


3,436


3,354

Federal funds purchased and securities sold










   under agreement to repurchase

322


190


173


159


140

Long-term debt

1,142


985


902


665


530

Junior subordinated debt

9


187


190


187


183

Other

2


-


1


1


-

        Total interest expense

8,315


8,057


7,750


7,107


6,813











        Net interest revenue

114,611


115,387


114,590


112,316


111,159

  Provision for credit losses

1,000


1,000


-


2,000


1,000

        Net interest revenue, after provision for










          credit losses

113,611


114,387


114,590


110,316


110,159











NONINTEREST REVENUE:










Mortgage banking

8,990


16,803


11,087


7,886


1,830

Credit card, debit card and merchant fees

8,903


9,262


9,292


9,495


8,961

Deposit service charges

9,689


9,956


11,313


11,018


11,014

Security gains, net

1,071


39


1


86


2

Insurance commissions

32,940


25,709


28,194


28,803


33,249

Wealth management

5,174


5,401


5,312


5,347


5,109

Other

4,102


4,805


4,474


5,891


4,562

        Total noninterest revenue

70,869


71,975


69,673


68,526


64,727











NONINTEREST EXPENSE:










Salaries and employee benefits

81,386


80,850


80,884


80,675


81,679

Occupancy, net of rental income

10,302


10,294


10,412


10,109


10,273

Equipment

3,568


3,563


3,423


3,295


3,765

Deposit insurance assessments

2,484


1,818


3,227


2,582


2,288

Regulatory settlement

-


-


-


-


10,277

Other

29,369


33,994


30,371


30,900


33,230

        Total noninterest expense

127,109


130,519


128,317


127,561


141,512

        Income before income taxes

57,371


55,843


55,946


51,281


33,374

Income tax expense

19,278


18,173


18,129


16,589


10,825

        Net income

$    38,093


$   37,670


$     37,817


$    34,692


$   22,549











Net income per share: Basic

$        0.41


$       0.40


$         0.40


$        0.37


$       0.24

                                  Diluted

$        0.41


$       0.40


$         0.40


$        0.37


$       0.24











 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Mar-17


Dec-16


Sep-16


Jun-16


Mar-16

LOAN AND LEASE PORTFOLIO:










Commercial and industrial

$  1,536,527


$   1,612,295


$   1,616,152


$    1,698,089


$  1,716,477

Real estate










   Consumer mortgages

2,675,672


2,643,966


2,611,387


2,549,989


2,480,828

   Home equity

626,488


628,846


622,566


614,686


605,228

   Agricultural

240,534


245,377


242,171


251,566


239,422

   Commercial and industrial-owner occupied

1,801,613


1,764,265


1,668,477


1,644,618


1,654,577

   Construction, acquisition and development

1,136,827


1,157,248


1,121,386


1,021,218


966,362

   Commercial real estate

2,271,542


2,237,719


2,240,717


2,254,653


2,233,742

Credit cards

103,813


109,656


107,447


108,101


106,714

All other

408,678


412,619


428,458


433,058


441,347

     Total loans

$ 10,801,694


$ 10,811,991


$ 10,658,761


$  10,575,978


$ 10,444,697











ALLOWANCE FOR CREDIT LOSSES:










Balance, beginning of period

$     123,736


$      125,887


$     126,935


$       126,506


$     126,458











Loans and leases charged-off:










Commercial and industrial

(384)


(2,483)


(1,180)


(748)


(140)

Real estate










   Consumer mortgages

(596)


(905)


(595)


(477)


(710)

   Home equity

(459)


(873)


(237)


(224)


(550)

   Agricultural

(44)


-


(89)


(10)


(11)

   Commercial and industrial-owner occupied

(404)


(20)


(261)


(660)


(154)

   Construction, acquisition and development

(30)


(10)


(5)


(280)


(226)

   Commercial real estate

(19)


-


(14)


(870)


(245)

Credit cards

(838)


(815)


(696)


(614)


(720)

All other

(559)


(580)


(713)


(417)


(487)

     Total loans charged-off

(3,333)


(5,686)


(3,790)


(4,300)


(3,243)











Recoveries:










Commercial and industrial

490


1,019


263


339


212

Real estate










   Consumer mortgages

625


413


327


499


455

   Home equity

356


71


109


246


80

   Agricultural

41


15


28


96


36

   Commercial and industrial-owner occupied

193


201


117


101


125

   Construction, acquisition and development

1,324


195


382


524


272

   Commercial real estate

69


176


1,043


509


683

Credit cards

249


208


262


199


181

All other

446


237


211


216


247

     Total recoveries

3,793


2,535


2,742


2,729


2,291











Net recoveries (charge-offs)

460


(3,151)


(1,048)


(1,571)


(952)











Provision charged to operating expense

1,000


1,000


-


2,000


1,000

Balance, end of period

$     125,196


$      123,736


$     125,887


$       126,935


$     126,506











Average loans for period

$ 10,820,486


$ 10,737,802


$ 10,601,481


$ 10,513,732


$ 10,372,925











Ratio:










Net (recoveries) charge-offs to average loans (annualized)

(0.02%)


0.12%


0.04%


0.06%


0.04%











 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Mar-17


Dec-16


Sep-16


Jun-16


Mar-16

NON-PERFORMING ASSETS










NON-PERFORMING LOANS AND LEASES:










  Nonaccrual Loans and Leases










    Commercial and industrial

$    13,959


$       13,679


$       11,659


$      8,675


$       10,248

    Real estate










       Consumer mortgages

21,543


21,084


20,196


19,309


22,968

       Home equity

3,157


3,817


3,721


2,734


3,564

       Agricultural

5,180


1,546


1,194


1,107


932

       Commercial and industrial-owner occupied

15,135


10,791


11,983


16,021


16,633

       Construction, acquisition and development

1,466


7,022


6,939


6,086


7,720

       Commercial real estate

13,638


13,402


14,793


14,197


19,417

    Credit cards

87


161


121


159


188

    All other

274


310


119


350


256

         Total nonaccrual loans and leases

$    74,439


$       71,812


$       70,725


$    68,638


$       81,926











  Loans and Leases 90+ Days Past Due, Still Accruing:

3,063


3,983


2,255


1,875


4,567

  Restructured Loans and Leases, Still Accruing

4,060


26,047


17,936


9,687


7,753

     Total non-performing loans and leases

81,562


101,842


90,916


80,200


94,246











OTHER REAL ESTATE OWNED:

8,458


7,810


11,391


14,658


12,685











Total Non-performing Assets

$    90,020


$      109,652


$      102,307


$    94,858


$      106,931











Additions to Nonaccrual Loans and Leases During the Quarter

$    23,348


$       16,007


$       17,319


$    10,553


$       15,933











  Loans and Leases 30-89 Days Past Due, Still Accruing:










    Commercial and industrial

$      4,083


$         3,449


$         6,736


$      3,748


$         3,758

    Real estate










       Consumer mortgages

10,149


14,490


15,443


15,784


11,985

       Home equity

1,720


3,072


3,854


2,842


2,414

       Agricultural

364


1,283


616


367


240

       Commercial and industrial-owner occupied

1,949


2,120


1,712


2,854


669

       Construction, acquisition and development

3,306


1,344


1,272


1,137


1,489

       Commercial real estate

2,631


653


15,221


3,776


1,831

    Credit cards

800


726


774


677


569

    All other

776


673


1,089


712


606

         Total Loans and Leases 30-89 days past due, still accruing

$    25,778


$       27,810


$       46,717


$    31,897


$       23,561











Credit Quality Ratios:










Provision for credit losses to average loans and leases (annualized)

0.04%


0.04%


0.00%


0.08%


0.04%

Allowance for credit losses to net loans and leases

1.16%


1.14%


1.18%


1.20%


1.21%

Allowance for credit losses to non-performing loans and leases

153.50%


121.50%


138.47%


158.27%


134.23%

Allowance for credit losses to non-performing assets

139.08%


112.84%


123.05%


133.82%


118.31%

Non-performing loans and leases to net loans and leases

0.76%


0.94%


0.85%


0.76%


0.90%

Non-performing assets to net loans and leases

0.83%


1.01%


0.96%


0.90%


1.02%











 

 

BancorpSouth, Inc.





Selected Loan Data





(Dollars in thousands)





(Unaudited)




















March 31, 2017




Special












Pass


Mention


Substandard


Doubtful


Loss


Impaired


Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:














Commercial and industrial

$  1,489,753


$                -


$       34,936


$            -


$                -


$  11,838


$   1,536,527

Real estate














   Consumer mortgages

2,611,576


517


62,045


258


-


1,276


2,675,672

   Home equity

615,753


-


9,881


-


-


854


626,488

   Agricultural

227,902


-


8,899


141


-


3,592


240,534

   Commercial and industrial-owner occupied

1,734,995


3,663


50,908


-


-


12,047


1,801,613

   Construction, acquisition and development

1,124,929


-


11,621


-


-


277


1,136,827

   Commercial real estate

2,216,915


-


42,614


-


-


12,013


2,271,542

Credit cards

103,813


-


-


-


-


-


103,813

All other

402,287


-


6,291


100


-


-


408,678

     Total loans

$ 10,527,923


$         4,180


$      227,195


$        499


$                -


$  41,897


$ 10,801,694






























December 31, 2016




Special












Pass


Mention


Substandard


Doubtful


Loss


Impaired


Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:














Commercial and industrial

$  1,562,263


$                -


$       41,618


$        100


$                -


$    8,314


$   1,612,295

Real estate














   Consumer mortgages

2,579,905


522


61,602


282


-


1,655


2,643,966

   Home equity

616,758


-


11,231


-


-


857


628,846

   Agricultural

233,939


-


10,577


-


-


861


245,377

   Commercial and industrial-owner occupied

1,705,266


3,668


47,010


-


-


8,321


1,764,265

   Construction, acquisition and development

1,135,618


-


15,697


-


-


5,933


1,157,248

   Commercial real estate

2,179,318


634


45,471


-


-


12,296


2,237,719

Credit cards

109,656


-


-


-


-


-


109,656

All other

405,611


-


7,008


-


-


-


412,619

     Total loans

$ 10,528,334


$         4,824


$      240,214


$        382


$                -


$  38,237


$ 10,811,991















 

 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)




















March 31, 2017


Alabama


















and Florida


















Panhandle


Arkansas


Louisiana


Mississippi


Missouri


Tennessee


Texas


Other


Total

LOAN AND LEASE PORTFOLIO:


















Commercial and industrial

$   146,277


$   181,759


$   172,034


$   554,665


$     85,672


$   118,052


$   219,638


$     58,430


$  1,536,527

Real estate


















   Consumer mortgages

355,497


322,928


224,643


846,615


89,752


302,422


506,417


27,398


2,675,672

   Home equity

95,605


44,558


71,903


230,822


21,956


144,109


15,722


1,813


626,488

   Agricultural

8,540


83,664


26,241


66,060


6,568


13,501


35,927


33


240,534

   Commercial and industrial-owner occupied

200,300


193,486


210,282


732,207


47,847


155,666


261,825


-


1,801,613

   Construction, acquisition and development

125,908


61,890


53,512


344,875


21,592


167,290


361,760


-


1,136,827

   Commercial real estate

314,657


355,978


219,715


585,549


200,684


202,476


392,068


415


2,271,542

Credit cards

-


-


-


-


-


-


-


103,813


103,813

All other

52,756


41,000


25,235


212,471


3,417


23,799


43,841


6,159


408,678

     Total loans

$ 1,299,540


$ 1,285,263


$ 1,003,565


$3,573,264


$   477,488


$ 1,127,315


$ 1,837,198


$   198,061


$ 10,801,694



















NON-PERFORMING LOANS AND LEASES:


















Commercial and industrial

$         248


$         532


$       2,449


$      5,438


$       4,554


$         105


$         842


$         142


$       14,310

Real estate


















   Consumer mortgages

727


4,019


1,485


11,269


813


1,782


4,444


412


24,951

   Home equity

383


791


829


690


81


383


-


-


3,157

   Agricultural

-


522


251


4,220


-


171


16


1


5,181

   Commercial and industrial-owner occupied

1,090


2,840


1,197


7,227


3,448


511


635


-


16,948

   Construction, acquisition and development

45


775


-


478


59


49


294


-


1,700

   Commercial real estate

1,014


601


42


11,346


-


13


746


-


13,762

Credit cards

-


-


-


-


-


-


-


1,252


1,252

All other

16


-


2


258


-


19


6


-


301

     Total loans

$       3,523


$     10,080


$       6,255


$    40,926


$       8,955


$       3,033


$       6,983


$       1,807


$       81,562



















NON-PERFORMING LOANS AND LEASES


















   AS A PERCENTAGE OF OUTSTANDING:


















Commercial and industrial

0.17%


0.29%


1.42%


0.98%


5.32%


0.09%


0.38%


0.24%


0.93%

Real estate


















   Consumer mortgages

0.20%


1.24%


0.66%


1.33%


0.91%


0.59%


0.88%


1.50%


0.93%

   Home equity

0.40%


1.78%


1.15%


0.30%


0.37%


0.27%


0.00%


0.00%


0.50%

   Agricultural

0.00%


0.62%


0.96%


6.39%


0.00%


1.27%


0.04%


3.03%


2.15%

   Commercial and industrial-owner occupied

0.54%


1.47%


0.57%


0.99%


7.21%


0.33%


0.24%


N/A


0.94%

   Construction, acquisition and development

0.04%


1.25%


0.00%


0.14%


0.27%


0.03%


0.08%


N/A


0.15%

   Commercial real estate

0.32%


0.17%


0.02%


1.94%


0.00%


0.01%


0.19%


0.00%


0.61%

Credit cards

N/A


N/A


N/A


N/A


N/A


N/A


N/A


1.21%


1.21%

All other

0.03%


0.00%


0.01%


0.12%


0.00%


0.08%


0.01%


0.00%


0.07%

     Total loans

0.27%


0.78%


0.62%


1.15%


1.88%


0.27%


0.38%


0.91%


0.76%



















 

 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)












Quarter Ended


Mar-17


Dec-16


Sep-16


Jun-16


Mar-16

NONINTEREST REVENUE:










Mortgage banking excl. MSR and MSR Hedge market value adj

$      8,056


$         5,561


$         9,274


$    11,978


$         9,784

MSR and MSR Hedge market value adjustment

934


11,242


1,813


(4,092)


(7,954)

Credit card, debit card and merchant fees

8,903


9,262


9,292


9,495


8,961

Deposit service charges

9,689


9,956


11,313


11,018


11,014

Securities gains, net

1,071


39


1


86


2

Insurance commissions

32,940


25,709


28,194


28,803


33,249

Trust income

3,561


3,874


3,641


3,493


3,430

Annuity fees

349


257


446


465


477

Brokerage commissions and fees

1,264


1,270


1,225


1,389


1,202

Bank-owned life insurance

1,669


2,104


1,775


1,813


1,893

Other miscellaneous income

2,433


2,701


2,699


4,079


2,669

     Total noninterest revenue

$    70,869


$       71,975


$       69,673


$    68,526


$       64,727











NONINTEREST EXPENSE:










Salaries and employee benefits

$    81,386


$       80,850


$       80,884


$    80,675


$       81,679

Occupancy, net of rental income

10,302


10,294


10,412


10,109


10,273

Equipment

3,568


3,563


3,423


3,295


3,765

Deposit insurance assessments

2,484


1,818


3,227


2,582


2,288

Regulatory settlement

-


-


-


-


10,277

Advertising

663


2,443


925


1,043


633

Foreclosed property expense

1,050


1,005


859


1,309


1,181

Telecommunications

1,147


1,245


1,288


1,259


1,295

Public relations

720


716


718


599


661

Data processing

6,623


6,903


6,856


6,685


6,391

Computer software

2,981


3,013


2,976


2,732


2,660

Amortization of intangibles

1,030


963


923


869


880

Legal

1,229


1,190


1,064


1,754


4,535

Merger expense

-


-


-


1


1

Postage and shipping

1,175


1,075


1,059


985


1,117

Other miscellaneous expense

12,751


15,441


13,703


13,664


13,876

     Total noninterest expense

$  127,109


$      130,519


$      128,317


$  127,561


$      141,512











INSURANCE COMMISSIONS:










Property and casualty commissions

$    19,755


$       19,098


$       20,927


$    20,417


$       19,877

Life and health commissions

6,465


5,757


5,897


6,252


5,615

Risk management income

648


610


674


592


623

Other

6,072


244


696


1,542


7,134

     Total insurance commissions

$    32,940


$       25,709


$       28,194


$    28,803


$       33,249











 

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)












Quarter Ended


Mar-17


Dec-16


Sep-16


Jun-16


Mar-16

MORTGAGE SERVICING RIGHTS:










Fair value, beginning of period

$     65,263


$       51,930


$       48,108


$     50,544


$       57,268

Additions to mortgage servicing rights:










   Originations of servicing assets

2,866


4,022


4,349


3,723


2,612

Changes in fair value:










   Due to payoffs/paydowns

(1,876)


(2,447)


(2,338)


(2,066)


(1,380)

   Due to change in valuation inputs or










     assumptions used in the valuation model

909


11,759


1,813


(4,092)


(7,954)

   Other changes in fair value

(1)


(1)


(2)


(1)


(2)

Fair value, end of period

$     67,161


$       65,263


$       51,930


$     48,108


$       50,544











MORTGAGE BANKING REVENUE:










Production revenue:










   Origination

$       5,117


$         3,335


$         6,973


$       9,366


$         6,420

   Servicing

4,815


4,673


4,639


4,678


4,744

   Payoffs/Paydowns

(1,876)


(2,447)


(2,338)


(2,066)


(1,380)

     Total production revenue

8,056


5,561


9,274


11,978


9,784

Market value adjustment on MSR

909


11,759


1,813


(4,092)


(7,954)

Market value adjustment on MSR Hedge

25


(517)


-


-


-

Total mortgage lending revenue

$       8,990


$       16,803


$       11,087


$       7,886


$         1,830































Mortgage loans serviced

$ 6,429,617


$   6,384,649


$   6,285,027


$ 6,156,258


$   6,096,220

MSR/mtg loans serviced

1.04%


1.01%


0.83%


0.78%


0.83%











AVAILABLE-FOR-SALE SECURITIES, at fair value










U.S. Government agencies

$ 1,818,180


$   1,789,427


$   1,691,866


$ 1,310,803


$   1,196,167

Government agency issued residential










   mortgage-back securities

167,542


176,243


184,095


180,178


189,741

Government agency issued commercial










   mortgage-back securities

170,082


172,279


178,826


193,475


207,908

Obligations of states and political subdivisions

352,324


360,005


384,996


399,391


408,537

Other

32,759


33,722


28,416


20,036


14,020

Total available-for-sale securities

$ 2,540,887


$   2,531,676


$   2,468,199


$ 2,103,883


$   2,016,373











 

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions

(Dollars in thousands, except per share amounts)

(Unaudited)

























Management evaluates the Company's capital position and operating performance by utilizing certain financial measures not calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), including net operating income, net operating income-excluding MSR, total operating expense, tangible shareholders' equity to tangible assets, return on tangible equity, operating return on tangible equity-excluding MSR,  operating return on average assets-excluding MSR, operating return on average shareholders' equity-excluding MSR, tangible book value per share, operating earnings per share, operating earnings per share-excluding MSR, efficiency ratio (tax equivalent) and operating efficiency ratio-excluding MSR (tax equivalent).  The Company has included these non-GAAP financial measures in this news release for the applicable periods presented.  Management believes that the presentation of these non-GAAP financial measures (i) provides important supplemental information that contributes to a proper understanding of the Company's capital position and operating performance, (ii) enables a more complete understanding of factors and trends affecting the Company's business and (iii) allows investors to evaluate the Company's performance in a manner similar to management, the financial services industry, bank stock analysts and bank regulators.  Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below.  These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure.  In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies' non-GAAP financial measures having the same or similar names.













Reconciliation of Net Operating Income and Net Operating Income-Excluding MSR to Net Income:


















Quarter ended




3/31/2017


12/31/2016


9/30/2016


6/30/2016


3/31/2016













Net income


$      38,093


$   37,670


$          37,817


$          34,692


$          22,549

Plus:

Merger expense, net of tax


-


-


-


1


1


Regulatory related charges, net of tax


-


-


-


-


9,412

Less:

Security gains, net of tax


664


25


-


53


2

Net operating income


$      37,429


$   37,645


$          37,817


$          34,640


$          31,960













Less:

MSR market value adjustment, net of tax

579


6,970


1,124


(2,537)


(4,931)

Net operating income-excluding MSR


$      36,850


$   30,675


$          36,693


$          37,177


$          36,891

























Reconciliation of Total Operating Expense to Total Noninterest Expense:



















Total noninterest expense


$    127,109


$ 130,519


$        128,317


$         127,561


$         141,512

Less:

Merger expense


-


-


-


1


1


Regulatory related charges


-


-


-


-


13,777

Total operating expense


$    127,109


$ 130,519


$        128,317


$         127,560


$         127,734













 

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions

(Dollars in thousands, except per share amounts)

(Unaudited)





































Reconciliation of Tangible Assets and Tangible Shareholders' Equity to 








Total Assets and Total Shareholders' Equity:


























Quarter ended




3/31/2017


12/31/2016


9/30/2016


6/30/2016


3/31/2016

Tangible assets











Total assets


$ 14,866,054


$  14,724,388


$  14,611,483


$ 14,137,160


$  13,926,398

Less:  

Goodwill


300,798


300,798


294,901


294,901


291,498


Other identifiable intangible assets


20,865


21,894


19,908


20,831


19,664

Total tangible assets


$ 14,544,391


$  14,401,696


$  14,296,674


$ 13,821,428


$  13,615,236













Tangible shareholders' equity











Total shareholders' equity


$   1,702,389


$    1,723,883


$    1,724,104


$   1,713,043


$    1,679,793

Less:

Goodwill


300,798


300,798


294,901


294,901


291,498


Other identifiable intangible assets


20,865


21,894


19,908


20,831


19,664

Total tangible shareholders' equity


$   1,380,726


$    1,401,191


$    1,409,295


$   1,397,311


$    1,368,631













Total average assets


$ 14,832,260


$  14,655,360


$  14,366,759


$ 14,027,786


$  13,851,661

Total shares of common stock outstanding


92,344,409


93,696,687


94,074,740


94,546,091


94,438,626

Average shares outstanding-diluted


93,829,400


93,966,392


94,563,833


94,694,795


94,593,540













Tangible shareholders' equity to tangible assets (1)


9.49%


9.73%


9.86%


10.11%


10.05%

Return on tangible equity (2)


11.19%


10.70%


10.68%


9.99%


6.63%

Operating return on tangible equity-excluding MSR (3)


10.82%


8.71%


10.36%


10.70%


10.84%

Operating return on average assets-excluding MSR (4)


1.01%


0.83%


1.02%


1.07%


1.07%

Operating return on average shareholders' equity-excluding MSR (5)


8.63%


7.08%


8.49%


8.84%


8.89%

Tangible book value per share (6)


$         14.95


$          14.95


$          14.98


$         14.78


$         14.49

Operating earnings per share (7)


$           0.40


$            0.40


$            0.40


$           0.37


$           0.34

Operating earnings per share-excluding MSR (8)


$           0.39


$            0.33


$            0.39


$           0.39


$           0.39

























(1)

Tangible shareholders' equity to tangible assets is defined by the Company as total shareholders' equity less goodwill and other identifiable intangible assets, divided by the difference of total assets less goodwill and other identifiable intangible assets.













(2)

Return on tangible equity is defined by the Company as annualized net income divided by tangible shareholders' equity.













(3)

Operating return on tangible equity-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by tangible shareholders' equity.













(4)

Operating return on average assets-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by total average assets.













(5)

Operating return on average shareholders' equity-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by average shareholders' equity.













(6)

Tangible book value per share is defined by the Company as tangible shareholders' equity divided by total shares of common stock outstanding.













(7)

Operating earnings per share is defined by the Company as net operating income divided by average shares outstanding-diluted.













(8)

Operating earnings per share-excluding MSR is defined by the Company as net operating income-excluding MSR divided by average shares outstanding-diluted.













Efficiency Ratio (tax equivalent) and Operating Efficiency Ratio-excluding MSR (tax equivalent) Definitions





The efficiency ratio (tax equivalent) and the operating efficiency ratio-excluding MSR (tax equivalent) are supplemental financial measures utilized in management's internal evaluation of the Company's use of resources and are not defined under GAAP. The efficiency ratio (tax equivalent) is calculated by dividing total noninterest expense by total revenue, which includes net interest income plus noninterest income plus the tax equivalent adjustment.  The operating efficiency ratio-excluding MSR (tax equivalent) excludes expense items otherwise disclosed as non-operating from total noninterest expense.  In addition, the MSR valuation adjustment as well as securities gains and losses are excluded from total revenue.  

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bancorpsouth-announces-first-quarter-2017-financial-results-300442157.html

SOURCE BancorpSouth, Inc.

Copyright 2017 PR Newswire

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